Selecting the best insurance for your luxury home

Luxury homes may have different insurance requirements because damages are typically more costly to fix or replace. Since you paid a lot for your home, it’s only natural that you’d want it properly insured.

Why you need it

Standard homeowner insurance policies typically do not provide enough coverage for high-end homes and their contents, such as expensive furniture, decor, and prized possessions. If you settle for regular home insurance, your home will likely be underinsured, exposing yourself to higher financial risks in the event of a loss.

What makes it different

High-value home insurance is specifically designed to protect luxury properties. These offer higher liability limits, and have better protection for both the assets and the homeowners. In short, high-value home insurance policies have better dwelling coverage, contents coverage, and liability coverage than regular policies.

Replacement cost coverage

The improved dwelling coverage usually includes extended replacement cost coverage for the house and its structures, allowing you to get a reimbursement for repairs and such. When exploring your insurance options, take into consideration the amount at which your home and its contents will be replaced. You can opt for a policy with replacement cost coverage. This replaces your home and belongings at full value without factoring in depreciation. You may also opt for an extended replacement cost coverage, which replaces your property up to a certain amount over its value – this option is suitable if you factor in the increasing costs of labor and materials.

Contents coverage

If you want your home insured, it’s only natural that you’ll want your possessions insured as well. These include items such as jewelry, money, paintings, and antiques. These items are usually covered up to a certain amount in regular policies, but it might not be high enough to cover the actual value. High-value home insurance offers higher limits for these items, with some items having a coverage of up to $25,000. These provide coverage against both theft and damage.

Liability coverage

Higher liability coverage allows you protection against injuries and damages both inside and outside your property. For example, if a guest sustains an injury in your backyard or pool, the liability coverage can come in handy. Luxury home insurance policies also provide excess liability coverage, allowing homeowners to further safeguard assets. These are also termed umbrella policies, and they are applied once the liability limits are reached.

Additional coverage options

Some high-end insurance policies exclusively offer special coverage based on your needs. One such example is the identity theft coverage – this protects you from scammers and fraudulent activity that attempt to steal your identity and assets. Another is flood insurance, which is not covered by most standard policies.

For more tips, check out our blog. If you’re interested in purchasing a luxury home, our agents at Coldwell Banker can help you look for the perfect property in Wenatchee, Leavenworth, Cashmere, or Lake Chelan. For more information, contact 509.888.8887 or info(at)cbcascade(dotted)com. You can also leave us a message here.